Alternation Special Edition 8 (2013) 42 - 65 42 ISSN 1023-1757

Generation Y Consumers’ Response to

Brand Building Activities on

Social Media Networks1

Najeeda Sha

Kantilal Bhowan

Abstract This study aims to establish whether Generation Y consumers interact with

brands through social media platforms, specifically social networking sites,

or if these consumers predominantly use these sites for socialising and/or

other purposes. The motive for this study was to establish how social

networking sites are used as brand building tools and whether these efforts

are received as intended by Generation Y consumers. The influence of

marketers’ efforts on social networking sites and the effect this has on

Generation Y consumers were explored in this study. A focus group

discussion session was held with participants of the same age composition as

Generation Y (18 to 30 years old) to identify major issues to be incorporated

in the survey instrument. Thereafter, a convenience sample comprising 132

respondents in the same age group was requested to complete a self-

administered questionnaire.This study identifies four social networking sites

that are predominantly used by Generation Y respondents and two distinct

market segments, one favourably inclined towards commercial activities on

social networking sites, and one that is not quite supportive of such

commercial activity.

Keywords: Generation Y consumers, social media, brand building

1 A previous version of this paper was presented as work in progress at the

23rd

Annual Conference of the South African Institute for Management

Scientists (SAIMS) held in September 2011.

Response to Brand Building Activities on Social Media Networks

43

Introduction In marketing management literature, like most other specialisations in

management discipline subjects, each era spawns new concepts and ideas for

exploration. In the current era, the power of social media for marketing

purposes is an idea that features prominently. Richard Binhammer from Dell

Inc. describes this era as the ‘connected era’ [where] ‘people come online to

find and share information as well as connect with each other’ (Armono

2009). There are numerous definitions of social media. Ryan and Jones

(2009: 152) define social media as: ‘... the umbrella term for web-based

software and services that allow users to come together online and exchange,

discuss, communicate and participate in any form of social interaction’.

Amongst the more popular social networking media are: Facebook,

YouTube, Flickr, Twitter, Blogs, Vlogs, LinkedIn and MySpace. In response

to the growing threat from social networking portals, Google has launched

Google+ which links its Google Docs, Gmail, Photos and Calendar portals.

These social media have the capability to connect people rapidly, not only

for social engagement but also for other causes such as lobbying for

environmental issues or political motives. The political turmoil raging in the

Middle East has largely been driven by their population’s ability to mobilise

protesters through social network channels. Business has little control over

the content of input into social media by their consumers and other interest

groups. This indicates that social media has the power to create a political

mind-set that can depose governments and it can also build a business or

destroy its reputation in the marketplace. So it is essential for business to

have a good understanding of the many facets about social media, especially

consumer attitudes towards and perceptions of social media. Three factors

are important considerations for businesses in managing their social network

communication strategies according to Odden (2008). The three factors are:

The Magnitude of Change

Odden (2008) indicates that: ‘… one billion people are now online, a figure

that was expected to double by 2011. Every day 500 000 new users come

online for the first time. Content is exploding. There was more content on

YouTube in 2006 than on the Web in 2000’. As computing power moves to

handheld devices such as cellular phones, social media will continue to grow

Najeeda Sha & Kantilal Bhowan

44

at an exponential rate, thus bringing about a rapid change in lifestyle,

particularly for the new generation of consumers.

The Value of Personal

Social media is moving away from ‘traditional, rational, objective,

institutional’ perspective to a more ‘subjective, emotive, personalised and

human’ perspective.

Connecting with Customers

Social networking originally served the human need for belonging; however,

it has now expanded to meet wider needs such as political lobbying,

information exchange on specific topics and obtaining product information

from users of that product. Modern-day cell phones give easy access to social

media. According to a USA survey conducted in 2010, ‘30% of smartphone

users accessed various social networks using their cell phones’ (Social

Networking 2012). Social media give individuals freedom of expression, as

marketers and other affected stakeholders have no control over discussions or

comments made by participants online.

Social media also gives businesses an opportunity to engage their

customers in two-way communications. Word-of-mouth marketing is now

much easier for consumers because comments posted on social media

networks are accessible to potential consumers everywhere regardless of

geographic locality. Communicating with customers in the social media

environment requires professional skills, as it is not a mere chat line between

people in a social environment. This new development has created a niche

for businesses to offer social media marketing services to client firms. The

research reported in this article is of importance for businesses that wish to

communicate effectively with consumers through social media channels.

Building Brand Equity The importance of branding has been known to marketers for many decades.

With few exceptions, brand building is a normal marketing function

Response to Brand Building Activities on Social Media Networks

45

embraced by not only large enterprises but even small businesses (Webster &

Keller 2004). Traditional channels for brand building include a diverse range

of media such as print media, television, the Internet, cinema, billboards,

pamphlets, brochures and audio media. However, in the past decade social

media has become a new tool for building brand equity.

Generation Y Consumers in the ‘Connected Era’ Generation Y, also known as Millenials, the Echo Boom Generation and the

Net Generation were born between the late 1970s and the 2000s (Tapscott

2009). Around the world, and especially in the more developed countries,

this cohort of consumers access their information from much wider sources

than their predecessors. According to Goetz and Barger (2008), this is the

generation that grew up with Facebook, MySpace, YouTube, instant

messaging, cell phones and the Internet. They spend on average 70 hours a

week (this is presumably data from the USA) on electronic communication

media such as cell phones, iPods and the Internet.

Numerous social networking media cater specifically for Generation

Y consumers. Schawbel (2009) indicates that these sites provide content to

this generation of consumers that caters for a wide range of interests, such as

career development (BrazenCareerist.com), entertainment and dating

(MyYearbook.com), college life (thequad.com), volunteering and fundraising

(coolpeoplecare.org), student life (Unigo.com) achieving sustainable values

(MakeMeSustainable.com), mentoring needs (iMantri.com), and career

development (FDCareer.com). The wide range of social networking sites

targeted specifically at Generation Y emphasises the fact that this cohort of

consumers is actively seeking a digital networking presence. So it is

important for business to understand the consumer behaviour drivers for this

market.

A Marketing Network (2009) report (cited in Sago 2010) indicates

that 18 to 24-year-old Generation Y consumers (in the USA) use Twitter for

the following purposes: 85% follow friends, 54% follow celebrities, 29%

follow family members and 29% follow companies. This study revealed that

just under one third (29%) of those surveyed use this social media vehicle to

engage with companies.

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Word-of-Mouth in the Online Social Networking Era Universal McCann (Smith 2009) conducted research amongst 22729 active

Internet users, aged 16 to 54, in 38 countries between November 2008 and

March 2009. In a global market of 625 million active Internet users, the

following statistics are estimated: 82.8% watch video clips online; 71.1%

visit a friend’s social network page; 62.5% create a profile on a social

network; 50.2% upload photos; and, of relevance for this study, 27.6% (i.e.

just over one out of four people surveyed) seek opinions on products and

brands. It is reasonable to speculate that over the years, more consumers will

rely on social media for product information. In the survey, consumers were

asked who they would seek an opinion from for brand purchase decisions.

The responses as reflected in priority order below shows that social networks

play an important role in providing a broad spectrum of consumers with the

required product information.

1. A family member

2. A close friend

3. A good contact on a social network

4. A neighbour

5. A store assistant

6. The author of a blog you read regularly

Amongst the countries surveyed in the Universal McCann study by Smith

(2009), Internet penetration is lowest in India (7.1%); followed by South

Africa (9.4%), while at the other extreme the highest penetration rates are in

Norway (86%), Finland (83%) and the Netherlands (82.9%). So South Africa

still has much scope for increased Internet penetration before social network

sites become significant sources of product information.

In an earlier Universal McCann study, respondents indicated their

opinion on the statements about blogging listed below (Smith 2008:25):

1. 56% agreed that ‘blogging is a good way to express oneself’.

7. 36% said that they ‘think more positively about companies that have

blogs’.

8. 33% said that they ‘have a favourite blog that they read regularly’.

9. 32% ‘trust bloggers’ opinions on products and services’.

Response to Brand Building Activities on Social Media Networks

47

10. 31% agreed that ‘blogging is an important way to socialise with

friends’.

This confirms the well-known fact in marketing that word-of-mouth

is a very powerful marketing tool that has just been strengthened by the

availability of social networks. The era of digital, Internet-based word-of-

mouth is now firmly established and can be a silver lining for marketers if

managed with care.

Having discussed the wide use of social networking for business and

other purposes, the problem statement and research objectives for this study

can now be formulated. The focus in this article is on Generation Y

consumers’ use of social media.

Problem Statement Generation Y consumers were born during an era when computers were

becoming widely available to First World consumers. Over time, less

developed countries have also embraced computer technology. The growing

middle class generation Y consumers in South Africa can be expected to

have access to computers at one or more venues such as places of education,

the workplace, Internet cafes and at home. Cell phones are widely used, even

in Third World countries by Generation Y consumers to access information,

particularly for consumer products that are of relevance to them.

Traditional media will still play a role in marketing for many years to

come. The advent of television did not eliminate radio, magazines or

newspapers. However, audience and readership patterns do shift over time

with each new development, so social media as a communication tool will

impact on how people inform themselves about consumer products.

Companies such as Klout and Audi reward their loyal customers

with corporate gifts (Marketing Network 2011). Nowadays most companies

request a ‘like us on your Facebook page’ button to be activated by network

browsers who visit their websites. These trends suggest that brand building

by using social network sites will be an on-going challenge for marketers and

a silver lining to escape the recessionary dark clouds still pervading in many

countries particularly in the Eurozone region.

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48

There is lack of research on how consumers in general and

Generation Y consumers in particular embrace social networking sites for

commercial purpose. This study aims to contribute to this knowledge gap by

investigating Generation Y’s consumer behaviour attributes relating to social

network sites by exploring the following five research objectives.

Research Objectives are to establish:

1. the activities Generation Y consumers participate in on social

networking sites.

2. if Generation Y consumers are using a diversity or concentration of

social networking sites.

3. whether businesses that make use of social networking sites targeted

at Generation Y are achieving their desired outcomes.

4. whether Generation Y consumers have shown resistance to or

acceptance of brand promotion and business activities on social

networking sites.

5. the major brands that Generation Y consumers come across on social

networking sites.

Research Methodology Before the questionnaire could be generated and distributed to the allocated

number of respondents, a focus group study was carried out as a primary

means to design the questionnaire. Eight respondents constituted the focus

group discussion, they were all students from the University of KwaZulu-

Natal. Respondents had to fall within the age category of 18–26 years old,

the age group that constitutes Generation Y consumers. In addition, it was

necessary for respondents to have access to the Internet and also to be users

of social networking sites. A structured questionnaire was distributed to 150

potential respondents who constituted a convenience sample for this study.

Responses were measured using a five-point Likert scale. In a comparative

research, Brad Sago’s (2010) study comprised 293 university students in the

age group 18–22 years old, who were also required to complete a self-

administered questionnaire.

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Reliability and Validity All 150 questionnaires were returned however, 18 questionnaires were

eliminated after statistical reliability testing reflected inconsistencies in the

responses provided by the respondents. The result from the test yielded an

alpha coefficient of 0.773 for related questions in the survey instrument for

the remaining 132 completed questionnaires. Only face/content validity was

used to test the validity of the questionnaire. Face validity is used to test

whether the instrument measures the construct it is designed to measure

(Sekaran & Bougie 2010:160).

Empirical Results

Demographics More than half (54.5%) of the respondents were males, female respondents

accounting for 45.5% of the sample. Nearly 94% of respondents were in the

age range 18–22, with the remaining 6.1% of respondents in the age range

23–26.

In terms of education, 79.5% of the respondents had a Grade 12 level

of education, followed by 17.4% who had a degree. Only 1.5% of the

respondents claimed to have ‘other’ educational levels and 1.5% had

diplomas.

Usage of Internet and Social Networking Sites Respondents indicated more than one location for their access to the Internet.

The survey revealed that 43.2% of respondents access the Internet from

home, 43.2% from university, 39.4% from cell phones, 2.3% from work and

3% from other sources. It was revealed that almost 58% of respondents

accessed social networking sites 16 or more times per week, while 21%

accessed social networking sites only 1 to 5 times per week. The remaining

respondents accessed social networking sites 6 to 10 times (13.5%) and 11 to

15 times (7.5%) per week. Respondents’ activities on social networking sites

indicated that 63.6% of respondents use social networking sites for

entertainment purposes, while 81.1% of respondents use social networking

sites for chatting. It was also found that 31.8% of respondents use social

Najeeda Sha & Kantilal Bhowan

50

networking sites for finding friends and that 48.5% of respondents use these

sites for networking. Furthermore, 65.2% of respondents use social

networking sites for maintaining friendships and lastly, 17.4% respondents

use social networking sites for keeping current with their favourite brands

and companies, while 23.5% of respondents claimed to have actually inter-

acted with companies, suggesting that the remaining 76.5% of respondents

do not interact with companies. This information indicates that businesses

have to be able to engage with and interact with consumers on social

networking sites if they are to win the confidence of their target market.

The second objective of the study was to establish whether

Generation Y consumers are using a diversity or a concentration of social

networking sites. Table 1 below illustrates that 90.9% of respondents use

Mxit, 90.2% of respondents use Facebook and much fewer respondents

(22%) use Twitter. MySpace (2.3%) and Flickr (1.5%).

Table 1. Social Networking Sites Used by Respondents (n=132)*

Social networking

site

Frequenc

y

% of

respondents

Facebook 119 90.2

Twitter 29 22

YouTube 59 44.7

Mxit 120 90.9

Myspace 3 2.3

Flickr 2 1.5

Others 10 7.6

*Respondents could indicate more than one option

From the results depicted in Table 1, it suggests that Generation Y

consumers are using a concentration of social networking sites in South

Africa, with Mxit and Facebook featuring prominently, followed to a much

lesser extent by YouTube and Twitter.

Table 2 below depicts the effect that brand advertising on social

networking sites have on consumer behaviour. It was found that the majority

Response to Brand Building Activities on Social Media Networks

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of the respondents (78%) agree that some brand advertisements on social

networking sites are useful, compared to 4.5% of respondents who disagree

with the statement. Table 2 also shows the effect of consumers visiting brand

pages on social networking sites; and consequently whether this strengthens

the brand image in the mind of the consumer or not. It was found that 74.3%

of respondents agreed that the brand’s image is strengthened, whereas 11.3%

of respondents did not agree with the statement. From these results, it can be

deduced that if businesses can encourage consumers to view their brand

pages, this will, on balance, lead to the strengthening of the brand image in

the consumers’ minds.

With regard to advertisement-led purchasing Table 2 shows that after

viewing a brand advertisement on a social networking site, 57.6% of

respondents did not react by buying the brand. In contrast, 23.5% of

respondents indicated that they bought a branded product after viewing its

advertisement on a social networking site. A large number (61.4%) of the

respondents agreed that visiting a brand’s page on a social networking site

reinforces brand loyalty. The implication thereof for businesses and their

brands is evident. Businesses have to manage their brands with particular

care to ensure that target consumers visit these brand pages to reinforce their

brand loyalty. This is imperative, as reinforced brand loyalty ensures repeat

purchases. It is also very significant for businesses to note that it costs five

times more to acquire a new customer than it does to retain an existing one

(Payne and Frow1999). Just over half of the respondents (56.1%) indicated

that they do not consciously look for brand information on social networking

sites, while only 19.7% of respondents claimed to specifically look for brand

information on social networking sites.

Table 2. Consumer Reactions to Commercial Activity on Social

Networking Sites (%) (n=132)

Variable Strongly

Agree Agree Unsure Disagree

Strongly

Disagree

Usefulness of

brand

advertisements

29 (22) 74

(56)

23

(17.4)

2

(1.5)

4

(3)

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Strengthens

brand image

36

(27.3)

62

(47)

19

(14.4)

13

(9.8)

2

(1.5)

Purchased brand

products

8

(6.1)

23

(17.4)

25

(18.9)

45

(34.1)

31

(23.5)

Reinforces

loyalty

17

(12.9)

64

(48.5)

32

(24.2)

12

(9.1)

7

(5.3)

Brand

information

33

(25)

41

(31.1)

32

(24.3)

19

(14.4)

7

(5.3)

Use for

commercial

purposes

69

(52.3)

39

(29.5)

20

(15.2)

4

(3) 0

Ignore brand

advertisements

19

(14.4)

25

(18.9)

28

(21.2)

54

(40.9)

6

(4.5)

Company

information

distortion

14

(10.6)

39

(29.5)

63

(47.7)

15

(11.5)

1

(0.8)

Trustworthy

brand

information

7

(5.3)

26

(19.7)

70

(53)

22

(16.7)

2

(5.3)

Invite others to

company page

12

(9.1)

40

(30.3)

35

(26.5)

26

(19.7)

19

(14.4)

Table 2 also shows that of the 132 respondents, 81.8% agree with the

statement that companies now use social networking sites for commercial

purposes. One third (33.3%) of the respondents claim to ignore brand

advertisements on social networking sites, whereas 45.4% of respondents

said that they pay attention to brand advertisements.

Regarding companies distorting their information pages on social

networking sites, data in Table 2 shows that 40.1% of respondents agree with

this statement. On the other hand almost half the respondents (47.7%) are

unsure of whether companies actually do distort their information pages on

social networking sites or not. Businesses have to be more transparent and

Response to Brand Building Activities on Social Media Networks

53

honest about their brand information as this would remove any doubt from

the consumers’ minds about the authenticity of the information provided on

such company pages.

The above-mentioned point can be further reiterated by looking at

the following information in Table 2. The table depicts that 53% of

respondents remain unsure about being able to trust brand information that is

found on social networking sites. Consequently, as previously highlighted in

this article, businesses have to be transparent about any brand information

that is available on their brand on social networking pages. Feedback, both

positive and negative, should be left posted as users will recognise attempts

to mask negative feedback, and this can cause harm to the firm’s reputation

in the marketplace. Businesses can and should respond to negative feedback

in order to defend themselves when necessary. Deleting or editing comments,

obstructs a necessary dialogue and compromises the very nature of social

media (Goetz & Barger 2008).

The last variable that Table 2 depicts is the willingness of consumers

to invite people to join company pages on social networking sites. Survey

data revealed that 39.4% of respondents indicated that they would invite

others to join company pages, whereas 34.1% of respondents said that they

would not do so; and 26.5% of respondents were uncertain as to whether

they were willing to invite people to company pages on social networking

sites. This information suggests a strong need by businesses to retain the

confidence of those who indicate that they are willing to invite others to join

company pages on social networking sites.

Emanating from these findings, four key factors that businesses

should address, include: driving online advertisement-led purchasing,

encouraging consumers to look for brand information on social networking

sites, increasing the credibility of brand information on social networking

sites and persuading consumers to invite others to their brand pages on social

networking sites.

In the survey, it was further revealed that the constant advertising of

brands on social networking sites creates an awareness of the brand for

32.6% of respondents. For 23.5% of the respondents, constant exposure to

brand advertisements creates awareness and an interest in the brand while

17.4% of respondents agree that being exposed to constant brand advertising

creates awareness, interest and a desire for the brand.

Najeeda Sha & Kantilal Bhowan

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The majority of respondents (84.9%) indicated that they usually use

search engines such as Google or Yahoo to look for information about brands

or companies. This suggests that consumers are not looking for information

about brands or companies on social networking sites; rather they choose to

resort to traditional search engines. This finding suggests an area of interest

that businesses should take note of and their future task is therefore to

stimulate the search of brand or company information from within their

pages on social networking sites. Attitudes towards commercial activities

would be of interest to those who manage corporate content of their social

networking sites.

Table 3 depicts whether Generation Y consumers show resistance or

acceptance of brand promotion and business activities on social networking

sites.

Table 3. Attitudes Towards Commercial Activities on Social Networking

Sites (%) (n=132)

Variable Strongly

Agree Agree Unsure Disagree

Strongly

Disagree

Commercial

activity is

annoying

21

(15.9)

40

(30.3)

33

(25)

32

(24.2) 6 (4.5)

Invasion of

privacy

10

(7.6)

16

(12.1)

50

(37.9)

44

(33.3) 11 (8.3)

The above table indicates that 46.2% of respondents agree that they

find any commercial activity on social networking sites annoying, while 25%

of respondents remain unsure towards this statement. Table 3 also depicts

that 41.6% of respondents disagree that commercial activities on social

networking sites are an invasion of privacy. This information is another

indicator that a large portion (41.6%) of the generation Y respondents in this

study are not averse to commercial activity on social networking sites.

An objective of this study was also to ascertain the major brands that

Generation Y consumers come across on social networking sites. It was

Response to Brand Building Activities on Social Media Networks

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found that 30.3% of respondents recalled five brand advertisements from

social networking sites, 16.7% of respondents recalled three; 9.8% recalled

one, 9.8% recalled two and 14.4% recalled four. In addition, the remainder of

respondents (18.9%) did not recall any brand advertisements from social

networking sites. Brand names that were recalled originated from clothing,

food, beverages, alcohol, cellphone network providers, satellite television

providers, banks, computer brands, retail stores, sportswear, magazines,

beauty products and other miscellaneous products and services. The most

common brand that was recalled was Nike (n=47), followed by DSTV

(n=23) and Guess and Adidas in joint third place (n=15). Overall brand recall

from social networking sites was very low amongst the survey respondents.

Brand recall would be a function of the amount of time spent on social

networking sites. Survey data reflects that 35.6% of respondents spend less

than five hours a week using social networking sites, 25.8% of respondents

spend six to 10 hours, 18.9% spend 11 to 20 hours, 6.8% spend 21 to 30

hours and 12.9% spend more than 30 hours per week.

Significantly for marketing purposes, 22.7% of respondents concur

that constant advertising of brands on social networking sites creates

awareness, interest, desire and leads to purchasing (action) the brand (AIDA

effect) in Marketing. So advertising on social networking sites does seem to

lead to actual purchases of the products. On the other end of the spectrum,

3.8% of respondents indicated that brands that are constantly advertised to

them on social networking sites have no impact on them.

Factor Analysis Factor analysis identifies the structure of a set of variables, and provides a

process for data reduction (Hair et al. 1998). In this study factor analysis was

conducted to establish the variables that affect consumer responses towards

brands on social networking sites. For the purpose of this research study, the

perceptions of consumers of the presence of brands on social networking

sites and how this affects consumer behaviour were examined to understand

if the factors can be grouped; and to reduce the variables to a smaller

number. The Kaiser Meyer Olkin (KMO) measure was used to assess the

effectiveness of factor analysis for the survey data, which produced a result

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56

of 0.706, indicating a moderately high degree of correlation amongst the

variables.

The Principal Components method of factor analysis was used to

extract the factors. Only Eigenvalues greater than 1 are considered

significant for interpretation purposes (Hair et al. 1998; Kinnear & Taylor

1991).

Table 4. Total Variance Explained

Component

Initial Eigenvalues

Total % of

variance

Cumulative

%

1 2.897 26.340 26.340

2 1.521 13.823 40.163

3 1.207 10.969 51.132

4 1.036 9.421 60.553

5 0.993 9.025 69.577

6 0.813 7.387 76.965

7 0.657 5.970 82.934

8 0.579 5.267 88.201

9 0.545 4.956 93.157

10 0.482 4.378 97.535

11 0.271 2.465 100.000 Extraction method: Principal Component Analysis

Table 4 reflects 11 factors and their relevant percentage of variance

explained. Four factors with Eigenvalues greater than 1 represent 60.553% of

the variance explained. Factor 1 accounts for most of the variance with

26.340% of variance explained and thereafter the following 10 factors

increase the total variance explained by a very small percentage. Table 5

which follows is based on factor rotation. For the purpose of comparison,

Varimax and Quartimax rotation have been used and will be interpreted and

discussed jointly. Naming factors was based primarily on the subjective

opinion of the researcher as advocated in the literature (e.g. Aaker et al.

2001).

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Table 5. Interpretation of Extracted Factors

Variable Attribute Varimax Quartimax

Factor 1: Brand value

Strength of brand image increases 0.847 0.850

Reinforced brand loyalty 0.794 0.802

Usefulness of brand adverts 0.719 0.717

Willingness to invite people to join company

(networking) pages 0.582 0.596

Factor 2: Resistance to commercial activity

Commercial activity is annoying 0.621 0.609

I do not search for brand information 0.848 0.853

I ignore brand adverts 0.641 0.618

Factor 3: Privacy

Commercial activities are an invasion of privacy 0.788 0.777

Factor 4: Information

Companies’ commercial purposes 0.532 0.531

Brand information can be trusted -0.471 -0.462

Companies distort information 0.746 0.745

Factor 1: Brand Value Factor 1 explains 26.34% of the variance, which accounts for most of the

variance. Three out of the four variables under Factor 1 have values above

0.7, which indicates moderately high degrees of correlation and depicts that

the commercial value of brands to the consumers is particularly significant as

it affects their perception of the brand image and usefulness of brand

advertisements. This then leads to an increased willingness to invite others to

the relevant company’s networking pages.

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Factor 2: Resistance to Commercial Activity Factor 2 accounts for 13.823% of the variance. All three variables under

Factor 2 have values above 0.6, which indicates a moderate degree of

underlying correlations. It can be deduced that if respondents find any

commercial activity by companies on social networking sites to be annoying,

then they will also not look for brand information on these sites. In addition

respondents will also ignore brand advertisements on social networking sites.

Factor 3: Privacy Factor 3 explains 10.969% of the variance. Factor 3 has a single variable

with a value above 0.7, which indicates a high score for this factor. This

suggests that some consumers could perceive commercial activities on social

networking sites to be an invasion of privacy. Furthermore, it can be deduced

that if respondents perceive commercial activities to be an invasion of

privacy, they are less inclined to interact with companies on social

networking sites, and will also be negative towards companies using social

networking sites for commercial purposes.

Factor 4: Information Factor 4 accounts for 9.421% of the variance. It can be inferred that if

respondents believe that companies distort the information on their brand

pages on social networking sites, then they are less likely to trust such brand

information.

Market Segments Cluster analysis was conducted to establish if different market segments exist

amongst the survey respondents. For the purpose of this research study 131

cases were reorganised into homogeneous subgroups. Table 6 which follows

below indicates that the cases can be processed into two clusters. Cluster

centre scores were weighted on a five-point rating scale, where 1=strongly

agree and 5= strongly disagree.

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Table 6. Final Cluster Centres (n=131)

1=Strongly Agree, 2=Agree, 3=Unsure, 4=Disagree,

5=Strongly Disagree

Cluster

1

(n=47)

2

(n=84)

Strengthened brand image 2.72 1.77

Increased brand loyalty 3.04 2.13

Brand adverts on social networking sites are useful 2.49 1.85

I invite people to company pages 3.79 2.57

I do not search for brand information 1.87 2.76

Companies use social networking sites for commercial

purposes 1.81 1.61

I ignore brand adverts 1.94 3.63

Companies distort brand information 2.55 2.65

Brand information can be trusted 2.94 2.99

Commercial activity is annoying 1.87 3.18

Consumer privacy is invaded 2.81 3.46

Table 6 shows that in this study 84 (64%) out of 131 respondents are more

accepting of statements approving commercial activities on social

networking sites while disagreeing with negative statements about

commercial social networking sites.

Cluster 1 respondents displayed a tendency to be more resistant

towards commercial activities on social networking sites. For example, for

the statements ‘I do not search for brand information’ and ‘Commercial

activity is annoying’ cluster 1 respondents have cluster centre scores of 1.87

each, demonstrating their agreement with the statements and displaying their

resistance to commercial activities on social networking sites.

Cluster 2 respondents, on the contrary, displayed tendencies of being

more supportive of commercial activities on social networking sites. For

example, for the statements ‘I do not search for brand information’ and

‘Commercial activity is annoying’, cluster 2 respondents have cluster centre

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60

scores of 2.76 and 3.18 respectively. This demonstrates their disagreement

with the statements and displays their acceptance of commercial activities on

social networking sites. This finding can be related to research results

tabulated in Marketing Network report (2009) which reflected that 29% of

Generation Y consumers follow companies on Twitter. Furthermore, in the

McCann Universal study conducted by Smith (2009), where it was revealed

that consumers in general (sample aged 16 to 54 – not all Generation Y

consumers) use ‘A good contact on a Social Network’ for product

information, is also in support of the finding that a segment of consumer

market, Generation Y and other market segments, are not averse to

commercial activity on social networking sites.

It should also be noted that some statements elicited similar

responses from both cluster 1 and cluster 2 respondents. A larger and

scientific random sample might have differentiated these statements more

sharply into either cluster.

The above analysis suggests that there are at least two distinct

market segments amongst Generation Y social media users.

Conclusion and Recommendations All objectives set for this study were achieved. Overall, this research has

revealed that Generation Y respondents who participated in this study

participate in a range of activities on social networking sites using a

concentration of a few social networking sites. The research findings showed

that the social networking sites that are used predominantly are Mxit and

Facebook, followed by YouTube and Twitter. The findings of this study also

revealed that many respondents were quite accepting of commercial activities

on social networking sites and there is some evidence to suggest that

businesses are achieving their desired outcomes.

It was also established that the majority of the respondents generally

do not view commercial activities on social networking sites as annoying or

as an invasion of privacy. Furthermore, one key aim of this study was to find

the brands that Generation Y consumers come across on social networking

sites. The most common brand that was recalled by respondents was Nike,

followed by DSTV and then Guess and Adidas jointly.

Response to Brand Building Activities on Social Media Networks

61

Despite recessionary conditions lingering in many economies around

the world, social networking media could provide marketers with a silver

lining for sustainable growth amongst Generation Y consumers and possibly

other demographic segments of their consumer markets.

Recommendations for Marketers The importance of revealing the social networking sites that are

predominantly used by Generation Y consumers is significant for marketers

and businesses alike. The research findings highlight the social networking

sites that businesses are recommended to focus on, if they are to reach their

target markets and achieve their desired outcomes, whether these be building

brand image, reinforcing brand loyalty, encouraging brand purchasing or

even persuading Generation Y consumers to invite others to their firm’s

brand pages on social networking sites. Given that it was found that

respondents were generally (but not completely) willing to accept

commercial activities on social networking sites, three key factors were

raised that business marketers need to address with regard to social

networking sites: 1) driving online advertisement-led purchasing, 2)

encouraging consumers to look for brand information on social networking

sites and 3) increasing the credibility of brand information on social

networking sites.

Furthermore, research findings suggest that if respondents find brand

advertisements on social networking sites to be useful, this will strengthen

their perception of the brand image as well as their brand loyalty. This then

leads to an increased willingness to invite others to such brand or company

pages. Therefore marketers must ensure that their brand advertisements that

are targeted at Generation Y consumers are both relevant and appealing. In

addition, findings from the research study suggests that if respondents find

any commercial activity by companies on social networking sites to be

annoying, then they will ignore brand advertisements on these sites. Business

marketers are thus obliged to make sure that whatever commercial activities

they participate in on social networking sites do not annoy their target

markets. What annoys this consumer market should be established through

market research.

Najeeda Sha & Kantilal Bhowan

62

Research findings also showed that some respondents perceive

commercial activities to be an invasion of privacy, so they are less inclined to

interact with companies on social networking sites, and will also be negative

towards companies using social networking sites for commercial purposes.

Businesses that target Generation Y consumers too aggressively are likely to

meet with adverse consumer response.

Furthermore, the research revealed that some respondents believe

that companies distort information about their brands on social networking

sites, so they are less likely to trust such brand information. Therefore,

businesses need to be transparent and honest with regard to any information

that appears on their brand pages that are targeted at Generation Y

consumers on social networking sites.

A key finding of this study confirmed that respondents could be

separated into two distinct clusters. One cluster of respondents seem more

accepting of commercial activities on social networking sites, while another

cluster of respondents appear not to be so inclined. These results suggest that

it would be most beneficial for marketers to find consumers that accept

commercial activity on social networking sites, and specifically target their

marketing efforts at these consumers, in order to achieve commercial

success.

Recommendations for Future Studies Treadaway and Smith (2010) suggest five broad themes that will define

social media and social marketing for years to come. These themes can also

be considered as possible areas of research for future research studies.

Theme 1: The need to share information.

Theme 2: Immediacy is here to stay.

Theme 3: Everyone is a source of information, and everyone is biased.

Theme 4: Noise level.

Theme 5: Melding of worlds.

Response to Brand Building Activities on Social Media Networks

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In addition to factor and cluster analysis, discriminant analysis of data should

also be undertaken in future studies to identify the strength of variables that

separate different market segments in the commercial social network media

category. This study can be simulated on a broader sample nationally and

globally and should also include older groups of consumers.

Finally, as stated earlier, it is necessary for business to know what

aspects of their commercial activity on social networking sites annoys

Generation Y consumers, and consumers in other market segments.

Likewise, it is also important to establish what aspects of commercial content

is appreciated by Generation Y consumers and consumers in general. There

is considerable scope for further research in social network marketing.

Limitations of the Study The exploratory data collected for this research was based on verbal

responses collected from a single focus group study. During this research,

respondents were only given verbal and written reference to social

networking sites, and were not presented with any visual cues and/or

physical interaction with either brands or social networking sites during the

collection of data. Consequently, one cannot be certain about what

respondents had in mind when responses were provided. The number of

respondents used in this study was only 132 and not necessarily

representative of the entire population. The geographic distribution of the

study was also confined, as responses were obtained from a convenience

sample of Generation Y consumers in Durban only. The use of a non-

probability sampling technique used for this study does not enable one to

generalise the results to a wider market segment of Generation Y consumers.

Despite these limitations, there was some data generated in this study that

was in the same direction as other research studies; e.g. Smith (2009) –

McCann Universal study.

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Najeeda Sha

School of Management, IT and Governance

University of KwaZulu-Natal

Westville Campus

South Africa

Kantilal Bhowan

School of Management, IT and Governance

University of KwaZulu-Natal

Westville Campus

South Africa

bhowan@ukzn.ac.za